Tel: +44 1903 209367
Mobile: +44 7802 651892
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Our invoices contain the following standard terms for payment:
Payable within 30 days from invoice date. All goods remain the property of Sealand Systems Ltd until paid in full including any interest payable. Compound interest of 1% of the outstanding balance is payable on the first day of each thirty day period starting on the thirtieth day after the invoice date.
The purpose of charging interest is to offset the cost to ourselves, and as an incentive for timely payment. We feel that this is sufficient and, although entitled by law, it is not usually our policy to add the statutory Late Payment charge unless a charge becomes necessary to offset our additional administrative costs in recovering a debt.
We quote the interest in the payment terms on every invoice in order to make it visible and explicit, rather than relying on the default implied terms specified by the law, and thus we avoid any appearance of hidden charges.
These interest terms are the “substantial contractual remedy” required by the relevant law, superseding the statutory default interest payments with a fixed and clearly defined charge.
Disbursements on behalf of clients
Disbursements of cash on behalf of a client will only be made after prior agreement in writing (email is sufficient for this purpose). The only exception to this is chargeable travelling expenses, which are covered (up to a declared limit) in our Travel and subsistence notes. Disbursements are invoiced as a short-term loan advanced to the client, repayable strictly within seven days if interest is to be waived.
The interest rate on disbursements is the same as the interest rate on invoices, but is charged from the day of the disbursement unless repayment is made within seven days.
Since legislation in 1998, 2002 and 2013, Statutory Interest and Late Payment charges have been implied by default in all commercial contracts and can only legally be excluded if there is an explicit “substantial contractual remedy” for late payment, such as for example alternative terms in a written contract or invoice.
The Late Payment of Commercial Debts (Interest) Act 1998, as modified by the Late Payment of Commercial Debts Regulations 2013 gives the details of statutory interest and fixed late payment charges.
For a simple treatment of the implications of the act and regulations, we find the following pages useful:
Introduction to the Late Payment Law: http://www.late-payment-law.co.uk
The Better Payment Practice Campaign: http://www.payontime.co.uk